New insurance business models to cause threat to market

Companies such as Google and Amazon may pose some of the biggest threats to Australian insurers, as consumers increasingly trust technology behemoths to provide services such as insurance and finance.

Overseas reports have singled out companies such as search giant Google and e-commerce group Amazon as players mulling entering the insurance sector, according to a Sydney Morning Herald report. These, along with other non-traditional insurance groups such as retailers tapping the insurance game, could spell the biggest threats to companies such as Suncorp Group and Insurance Australia Group's market share in Australia, according to Accenture.

"The combination of new business models, some of which may break through, along with companies looking for adjacency in the insurance market [could see Australian insurers] come under pressure," Ravi Malhotra, who leads Accenture's insurance division in Australia, said.

In May, retailer Wal-Mart entered the auto insurance market, while more recently Swedish furniture group IKEA became one of the latest retailers to push into the insurance market. IKEA started selling pregnancy and child insurance in October, according to overseas reports.

Research from Accenture showed that around 50 per cent of Australians were motivated by price when shopping around for motor insurance. Nearly 70 per cent of consumers around the globe would also consider buying insurance products from companies such as Google and Amazon, according to a separate survey of over 6,000 people by Accenture.